MPU3222 Entrepreneurship Skills 2: FEEL FRESH Business Plan Report

This report outlines a business plan for FEEL FRESH, an online business venture focused on selling detox water to address the rising obesity rates in Malaysia. The plan details the company's USP, vision, and mission, emphasizing quality health at suitable prices. It includes financial projections such as profitability and cash flow statements, considering factors like tax rates and COGS. The report also provides the objectives of the business, which includes achieving high-profit margins, gaining a competitive edge, and increasing customer satisfaction. The financial analysis incorporates assumptions about sales growth, and the conclusion suggests the business's viability and potential for financial success. The report uses various references to support its claims and analysis. The business plan also includes a financial plan with projected income and cash flow statements. The business aims to gain a competitive edge by offering quality products at suitable prices and increasing customer satisfaction by focusing on quality and sustainability. The report includes a conclusion that states the business plan is viable and will help the firm attain higher profit margins. The plan is part of an Entrepreneurship Skills 2 module assignment.

ENTREPRENEURSHIP

Overview of business plan
 In the present era, level of obesity in Malaysia is
increasing with the very high pace. From assessment, it
has identified that in Southeast Asia prevalence level of
obesity is high over other regions.
 Report of ‘Tackling Obesity in Asean” presents that
obesity rate in Malaysia was 13.3%, whereas 38.5%
people were considered as over weighted.
 Hence, by analyzing such issue entrepreneurs are
planning to the initiate business namely FEEL FRESH
through the online means. Through such business sole
traders will offer detrox water that helps in weight loss
and enhance health quality.

CONTD..
 Entrepreneurs will start such firm as partnership unit
where all the relative entities will share both risk and
profit equally.
 The rationale behind the selection of online business
mode is that it requires low investment and helps in
attracting large number of customers.
 Moreover, now customers prefer to purchase products or
services through online which in turn offers high level
of convenience to them. Hence, by taking into account
all such aspects all the partners of FEEL FRESH are
planning to offer detrox water via online mode.

 USP of FEEL FRESH is to ‘Enjoy quality health at
suitable Prices’.
 Vision: To attain leading position in the strategic
business environment by offering high quality services
to the customers.
 Mission: This statement of FEEL FRESH includes
maximization of profitability and enhancement of
customer base by performing activities in an eco-
friendly way.

CONTD..
Objectives: Main aim or objectives of entrepreneurs
behind carry out business of detrox water is enumerated
below:
 To attain high profit margin by exerting effectual control
on cost level.
 To gain competitive edge over others by offering
quality water products or services to the customers at
suitable prices.
 To increase customer satisfaction and brand image by
laying more focus on quality and sustainability aspect of
operations.

Financial Plan
In order to assess financial viability and position income & cash
flow statement as well as balance sheet is prepared by taking into
account following assumptions:
 Tax rate will be 5% in the year 1 and 2 because income of such
partnership firm falls into the range of MYR 20001 -35000.
However, in the third year tax rate will 10% as income level is
within the range of MYR 35001 to 50000 (MALAYSIA: TAX
SYSTEM, 2017).
 Further, COGS will be 30% of sales.
 For per 700 ml of detrox water FEEL FRESH will charge MYR
9.90 respectively.
 Considering the trend of obesity and individuals preference in
relation to using products that helps in losing weight it is
estimated that sales will increase annually by 18%.

Profitability Statement
Partic
ulars
Year
1 Year 2 Year 3
Sales 79497
93806.
5
11069
2
less:
COGS
@
30% 23849 28142 33207
Gross
profit
(GP) 55648 65665 77484
Particulars Year 1 Year 2 Year 3
Gross profit (GP) 55648 65665 77484
Less: indirect
expenses
Promotional
expenses 1590 1650 1700
Selling and
distribution
expenses 7950 9381 11069
Utility expenses 11925 14071 16604
Insurance 400 400 400
Miscellaneous
Expenses 3975 4690 5535
Depreciation 1200 1200 1200
Total operating
expenses 27039 31392 36507
Profit before tax 28609 34273 40977
Less: Tax @ 5% 1430 1714 4098
Profit after tax 27178 32559 36879

Cash flow statement
Pre-operating year Year 1 Year 2 Year 3
Opening Balance 18000 69027.5 129728
Cash Sales 79497 93806.5 110692
Owner's capital 50000
Total Cash Inflow 50000 97497 162834 240420
Cash Outflow
Fixed Assets 20000
Market Research 3000
other expenses 2000
Legal help and permits 6000
Promotion and
advertisement 1000 1590 1650 1700
Selling and distribution
expenses 7950 9381 11069
Utility expenses 11925 14071 16604
Insurance 400 400 400
Miscellaneous Expenses 3975 4690 5535
Depreciation 1200 1200 1200
Tax 1430 1714 4098
0 0 0
Total Cash Outflow 32000 28469.5 33105.6 40605.2
Closing Balance 18000 69027.5 129728 199815

Conclusion
From the above business plan, it has been
concluded that by offering detrox water the
customers via online firm would become able to
attain success.
Further, it has been articulated that from the
financial perspective concerned or proposed
business plan is viable and helps firm in
attaining higher margin.

REFERENCES
MALAYSIA: TAX SYSTEM. 2017. [Online]. Available through:
<https://en.portal.santandertrade.com/establish-overseas/malaysia/
tax-system >.
Malaysians most obese in region. 2017. [Online]. Available through:
<https://www.nst.com.my/news/nation/2017/06/246538/malaysians
-most-obese-region >.
Steps to Create a Marketing Plan. 2017. [Online]. Available
through :<https://www.thebalance.com/what-is-a-marketing-plan-
1794426>.
Ericksen, N. J., Berke, P. R. and Dixon, J. E., 2017. Plan-making for
sustainability: The New Zealand experience. Taylor & Francis.
Eusebio, R., 2017. Marketing II. Marketing, p.2018.
Meyer, P. H., 2016. A Parish Guide to the Use of Creative Problem
Solving in Marketing Plan Development.